The monopoly market structure is characterized by ________.
A) low barriers to entry
B) free entry and exit
C) high barriers to entry
D) government regulation of price

Question

Quizplus · Accepted Answer

Monopoly market structure is characterized by high barriers to entry, which usually prevent new firms from entering the market and competing with the existing monopoly. These barriers can be in the form of patents, economies of scale, control of essential inputs, and government regulations, among others. Therefore, monopolies have significant market power and can set their prices and output levels.

The Monopoly Market Structure Is Characterized by ________